Establish modularization as an effective strategy
The first key modularization method that will improve the capital efficiency of your project is to establish modularization as an effective strategy.
Modularization for a project involves developing pre-assemblies that are fabricated and installed on a module off-site in a controlled environment. Removing less productive labor offsite to a more controlled environment improves safety and quality. Over the last decade, maximizing the application of modularization has been proven to reduce cost and provide cost and schedule certainty. Modularization is an extensively used strategy in Canada in heavy industrial applications. In some countries, the strategy to modularize is not being applied and the benefits are not being realized. This is due to lack of experience with this strategy.
The decision should be based on the cost of site labor vs shop labor plus the cost of additional steel, transportation and engineering costs. DyCat Solutions (DCS) applies a Class 5 estimating tool to determine whether modularization will be effective on your project.
Modularization should be considered in the early stages of the project, as modularization is more difficult to execute and requires disciplined planning in the engineering phase. The decision to modularize if often not made at the correct phase of the project.